How-to Guide for Buying Nexus Mutual Custody Cover through iTrust
Hodlnaut is a crypto interest-earning platform that enables users to deposit their cryptocurrencies and earn up to 12.73% APY. With no minimum deposit required, customers can start earning interest on their crypto assets as soon as they finish the KYC procedure. For ensuring optimal security, Hodlnaut also enables its customers to buy Nexus Mutual’s Custody Cover that safeguards their funds seamlessly.
To make the custody cover purchase even more straightforward, Hodlnaut has partnered with iTrust so that users can buy the cover directly from the Hodlnaut platform. Here’s what you need to know about the custody cover:
- Nexus Mutual’s Custody Cover is optional for users and works as an additional safety measure for insuring the funds.
- The custody cover can be availed if Hodlnaut gets hacked and you lose more than 10% of your funds or if withdrawals from Hodlnaut are halted for more than 90 days.
- You can purchase the custody cover in ETH or DAI, and in the event of a successful claim, the payment will be made in the currency you select. For instance, if you hold BTC on Hodlnaut, you can buy cover in ETH since it is the most closely related asset in terms of price. After your claim is successful, you can purchase the BTC back with ETH.
With Hodlnaut’s integration with iTrust, users can manage their own risks within the Hodlnaut platform without having to visit Nexus Mutual’s website. This way, Hodlers can manage their deposits and safeguard them within a single platform.
In this guide, we will walk you through the steps you need to take in order to buy a custody cover on the Hodlnaut Platform with iTrust integration.
The guide has been updated to clarify that based on Hodlnaut's interpretation of Singapore's Laws, the custody cover provided by Nexus Mutual via iTrust on Hodlnaut’s platform is not legally defined as insurance.
Disclaimer: Hodlnaut would also like to highlight that iTrust and Nexus Mutual are not entities regulated by the Monetary Authority of Singapore (MAS), and Hodlnaut is not licensed by the MAS to provide the optional custody cover, nor licensed to itself carry on any regulated insurance activities. For the avoidance of doubt, Hodlnaut, in providing the option to purchase custody cover on its platform, is in no way providing an insurance product.
1. Login to Your Hodlnaut Account
Go to https://app.hodlnaut.com/ and log into your Hodlnaut account.
2. Go to User Settings
After you log in, you will see a dashboard as shown below, and on the top right, you can click on the drop-down and go to the user settings.
3. Navigate to “Custody Cover” and Click on “More”
Scroll down to “Custody Cover” and click on more.
4. Specify the Cover Amount and Cover Period
Enter the cover amount you would like to avail along with the duration in terms of the number of days. You can then proceed to get the quote for your Nexus Mutual Hodlnaut Cover. Note that you can only buy the custody cover in ETH or DAI.
To determine the cover amount, you would have to first estimate how much ETH is your assets worth. For example, if you have 3 ETH and 1 BTC, then considering the price of BTC and ETH on 30 December 2021, you can choose to purchase cover amount of either 15.68 ETH or 58,248.53 DAI.
1 BTC = 12.68 ETH
1 BTC = 47,104.04 DAI
1 ETH = 3,714.83 DAI
If you purchase the cover in ETH,
3 ETH + 12.68 (1 BTC) = 15.68 ETH
If you purchase the cover in DAI,
11,144.49 (3 ETH) + 47104.04 (1 BTC) = 58,248.53 DAI
*Note that this is a sample calculation and you need to calculate the cover amount based on the current value of the mentioned coins.
5. Review the Quote and Check the Disclaimers
Next up, you can review the quote and check all the disclaimers before buying the cover. Once you have read all disclaimers and agree with the terms and conditions, you may purchase the cover.
6. Order Processing
Click on Buy Cover and your order will be processed. Based on the Blockchain, you will get an email confirmation from iTrust within 30 minutes.
*Note: After purchasing the Nexus Mutual Hodlnaut Cover, you can manage your custody cover on iTrust’s dashboard. Additionally, you will be able to see the cover’s expiry date on the iTrust dashboard and will also receive an email two weeks prior to the expiration of the cover from iTrust. Please use the same email address with which you have registered with Hodlnaut to access your account with iTrust. The iTrust dashboard will look something like the image below. You can renew the existing cover or buy a new one on Hodlnaut’s platform. Please note that the cover cannot be canceled from Hodlnaut’s platform.
With the steps mentioned above, you can purchase the Custody Cover within the Hodlnaut platform seamlessly. If you need any further assistance, please reach out to us at firstname.lastname@example.org.